Correlation Between Corline Biomedical and Nordea Bank
Can any of the company-specific risk be diversified away by investing in both Corline Biomedical and Nordea Bank at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Corline Biomedical and Nordea Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corline Biomedical AB and Nordea Bank Abp, you can compare the effects of market volatilities on Corline Biomedical and Nordea Bank and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Corline Biomedical with a short position of Nordea Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corline Biomedical and Nordea Bank.
Diversification Opportunities for Corline Biomedical and Nordea Bank
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Corline and Nordea is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Corline Biomedical AB and Nordea Bank Abp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordea Bank Abp and Corline Biomedical is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Corline Biomedical AB are associated (or correlated) with Nordea Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordea Bank Abp has no effect on the direction of Corline Biomedical i.e., Corline Biomedical and Nordea Bank go up and down completely randomly.
Pair Corralation between Corline Biomedical and Nordea Bank
Assuming the 90 days trading horizon Corline Biomedical is expected to generate 1.07 times less return on investment than Nordea Bank. In addition to that, Corline Biomedical is 3.96 times more volatile than Nordea Bank Abp. It trades about 0.11 of its total potential returns per unit of risk. Nordea Bank Abp is currently generating about 0.47 per unit of volatility. If you would invest 12,030 in Nordea Bank Abp on October 31, 2024 and sell it today you would earn a total of 1,240 from holding Nordea Bank Abp or generate 10.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Corline Biomedical AB vs. Nordea Bank Abp
Performance |
| Timeline |
| Corline Biomedical |
| Nordea Bank Abp |
Corline Biomedical and Nordea Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corline Biomedical and Nordea Bank
The main advantage of trading using opposite Corline Biomedical and Nordea Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corline Biomedical position performs unexpectedly, Nordea Bank can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Nordea Bank will offset losses from the drop in Nordea Bank's long position.| Corline Biomedical vs. Cantargia AB | Corline Biomedical vs. Kancera AB | Corline Biomedical vs. Gabather AB | Corline Biomedical vs. Genovis AB |
| Nordea Bank vs. Norion Bank | Nordea Bank vs. Corline Biomedical AB | Nordea Bank vs. Zenicor Medical Systems | Nordea Bank vs. White Pearl Technology |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stocks Directory module to find actively traded stocks across global markets.
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